Modern Australian
The Times

Airbnb is blamed for Tasmania's housing affordability problems, but it's actually helping small businesses

  • Written by Louise Grimmer, Lecturer in Marketing, Tasmanian School of Business and Economics, University of Tasmania
Airbnb is blamed for Tasmania's housing affordability problems, but it's actually helping small businesses

Housing affordability is a central issue in the Tasmanian election, but regulating Airbnb is not the answer.

Our ongoing research shows that Airbnb is beneficial for the economy, especially in remote areas. In addition to creating accommodation for tourists and providing income for hosts, we found that the recommendations Airbnb hosts provide are incredibly important for small businesses.

A 2017 Anglicare report acknowledged that Airbnb might be taking some of the private rental market in Tasmania but it didn’t have any evidence to confirm this.

Our prior research shows that shops and eateries in regional and rural areas struggle to attract visitors. The word-of-mouth marketing provided by Airbnb hosts is helping to solve this problem.

One of the Airbnb hosts in our study said:

It’s an opportunity for people to get an honest insight into where they’re staying … you might know of a local place that doesn’t have great marketing or money to spend on marketing that you know [guests] wouldn’t have found otherwise.

Read more: How Airbnb is reshaping our cities

The Tasmanian government deregulated Airbnb in 2017, allowing owners to rent up to four rooms on sharing platforms. Airbnb claims to have hosted 169,000 guests in the 12 months to January 2017. This is around 10% of all tourists to Tasmania in that period.

According to a report by Deloitte Access Economics, a majority of Airbnb listings are located outside traditional hotel districts. Airbnb guests spent an estimated A$27.3 million outside the greater Hobart region in 2015-16.

In our research, we have interviewed hosts, guests and small business operators in Tasmania. Many hosts rent out rooms that would not otherwise be available through long-term rental, which deflates some of the arguments that Airbnb is removing large portions of the supply of rental units.

Our study also confirmed Airbnb guests stayed, and spent money, in areas outside major tourist destinations. This provides opportunities for small local businesses located on the city fringe, as well as in suburban, coastal and rural regions.

Read more: Airbnb, social media and the quest for the authentic urban experience

Airbnb guests want to make deep connections with their destination. They therefore desire alternative sources of information in addition to mainstream tourism marketing. Who better to give an insider’s view than a local?

As a result Airbnb visitors are discovering more local small businesses, in a variety of locations, through word-of-mouth recommendations from Airbnb hosts.

One Airbnb guest in our study said:

I’m looking for a host to tell me what’s going on, and I would value that above any other source of information really … it makes a big difference what the host says.

The demographics of the hosts are also important to note. Many Airbnb hosts are single women. Hosting allows them to supplement their incomes and helps them pay rent or mortgages.

“I think it’s a positive way of making life a bit easier for everyone involved… it gives a sense for almost everyone to be an entrepreneur … maybe it’s a bit cheesy, but it empowers people…,” said one female host.

Read more: Airbnb and empty houses: who's responsible for managing the impacts on our cities?

As the number of Airbnb hosts grows across Tasmania, local councils, residents, tourism and hospitality lobby groups and small accommodation businesses continue to grapple with its impact.

Some on Hobart City Council want to regulate and tax Airbnb to discourage the conversion of rental properties into short-term rentals.

The Tasmanian Greens have promised to regulate Airbnb if they are successful in the upcoming election.

But Tasmania is experiencing an acute tourist accommodation shortage thanks to recent improvements in wilderness infrastructure and the “MONA effect”, among other factors.

Airbnb not only utilises existing infrastructure to meet this demand, our research shows it empowers female hosts and encourages tourists to discover, visit and spend in remote communities.

Authors: Louise Grimmer, Lecturer in Marketing, Tasmanian School of Business and Economics, University of Tasmania

Read more http://theconversation.com/airbnb-is-blamed-for-tasmanias-housing-affordability-problems-but-its-actually-helping-small-businesses-91566

Hoteliers Look to Clever Value Adds to Increase Revenue

The Australian hospitality industry is still in recovery mode after a notoriously rough patch in recent years. While there has been a post-COVID tra...

Moving to Queensland? Here’s How to Prep Your Car for the Big Move North

There’s no sign of the northern migration slowing down, with thousands of southerners fleeing from chaotic lifestyles and cooler climates for a brig...

Diesel Shortage to Impact Trades and Contractors

Strait of Hormuz blockage affecting all major parts of trades and construction Trades and construction across residential, commercial and industria...

Why Holiday Home Owners Turn to Rental Management Agents

The Allure — and the Reality — of Renting Out Your Property Owning a holiday home is a dream for many Australians. Whether it's a beachside sha...

Why Finding Reliable Doctors In Bundoora Is Important For Long-Term Health

Access to quality healthcare plays an important role in maintaining overall wellbeing and managing health concerns early. Trusted Doctors in Bundoor...

Understanding the Different Types of Car Services: Minor vs Major

When it comes to car maintenance, one of the most important things every vehicle owner should understand is the difference between a minor and a maj...

How Superannuation and TPD Insurance Work Together

Superannuation is an essential part of financial planning in Australia. It is designed to provide individuals with income during retirement, helping...

Tiny Towns funding granted for Mt Hotham and Mt Buller upgrades

Alpine Resorts Victoria (ARV) has welcomed funding support from the Victorian Government’s  Tiny Towns Fund, with both Mt Hotham and Mt Buller se...

Locksmith Services: Why Professional Security Solutions Matter More Than Ever

Security is a critical concern for homeowners, businesses, and vehicle owners alike. Whether it involves protecting a property, replacing damaged lo...

Why Tooth Fillings Are Important For Protecting Damaged Teeth

Cavities and minor tooth damage are common dental problems that can worsen if left untreated. Professional tooth fillings help restore damaged teeth, ...

The Connection Between Visibility and Driver Confidence

Operating a vehicle safely requires an immediate, uncompromised stream of visual information from the surrounding road environment. A driver's decis...

Important Things To Know Before Starting An SMSF Setup

Planning for retirement requires careful financial decisions, and many Australians are now looking for more direct control over how their superannua...

Why Retail Cleaning Plays a Key Role in Customer Experience and Business Success

Professional retail cleaning services are an essential part of maintaining a welcoming, safe, and professional environment for customers and staff...

Simple Ways to Make a Commercial Property More Appealing to Buyers

Selling or leasing a commercial property isn’t just about listing the square metres, taking a few photos and waiting for the right person to appea...

What Café Owners Should Know Before Upgrading Their Display Setup

A café display fridge does a lot more than keep cakes cold and sandwiches fresh. It quietly shapes the way customers browse, the way staff move beh...

Creating a Backyard That Feels Comfortable All Year Round

A great backyard doesn’t need to be huge, expensive or perfectly styled. Most of the time, the spaces people actually use are the ones that feel e...

How Homeowners Can Make Smarter Energy Decisions Before Upgrading

Energy upgrades used to feel like something you only looked into after a power bill gave you a nasty surprise. These days, though, more homeowners a...

Why Retail CX Breaks During Peak Sales Events and How to Prevent It

Retail customer experience has become one of the most important drivers of revenue growth, especially during high-intensity sales periods. However, ev...